Obama proposes cuts to Social Security – Political Hotsheet – CBS News

President Obama has said he wants to use a looming deadline over raising the amount Congress is allowed to borrow to work a deal with Republicans on something “big.”

And now he plans to propose major changes to Social Security as part of that “grand bargain,” which he hopes will reduce the deficit by as much as $4 trillion over the next decade, administration sources tell CBS News.

Mr. Obama is scheduled to meet at the White House Thursday morning with congressional leaders, including House Speaker John Boehner, from both parties to negotiate a deficit reduction deal.

Mr. Obama on Wednesday again warned of catastrophic consequences for the U.S. and global economy if Congress does not increase the $14.3 trillion debt ceiing by August 2.

The two sides had earlier been at impasse on plan to reduce the deficit by $2 trillion over ten years, and it remains unclear how a package twice that size will make an agreement any easier.

Mr. Obama believes that a larger deal would actually be easier to get through Congress. His thinking, administration officials say, is this: Any major deal, whether it’s for $2 trillion in cuts or $4 trillion in cuts, will cause significant pain for both parties. But a larger deal allows backers to argue that despite their misgivings, they’ve taken a major step toward dealing with the deficit and debt problem.

The administration would only agree to cuts to Social Security benefits in exchange for reducing some eliminating some tax breaks that benefit the wealthy and certain industries, including oil and gas firms.

House Majority Leader Eric Cantor, the chamber’s number two Republican, told reporters Wednesday he would be willing to eliminate some of those tax breaks if there were tax cuts in other areas that would offset them.

“If the president wants to talk loopholes, we’ll be glad to talk loopholes,” Cantor said Wednesday.

Senate Republicans, however, have said the loophole is too complicated to be included in part of the current negotiations and should be handled separately.

Cantor, who walked out of the talks in late June, on Thursday expressed optimism a deal could be made.

“I believe that we can come together, we can find ways to cut spending, to get our fiscal house in order, so we can begin to grow the economy again and people can get back to work,” Cantor said on CBS’ “The Early Show.”

Cantor did not mention increasing revenues, which Democrats say is critical for a balanced approach to reducing the deficit.

The economy grew at a 1.9 percent annualized rate in the first three months of this year after growing at a 3.1 percent pace in the three months through last December.

via Obama proposes cuts to Social Security – Political Hotsheet – CBS News.

About Saleem Mohammed
PROFESSIONAL PROFILE: I have substantial experience in Healthcare Marketing and PR, Human Resources Management, Medical Staffing, Outsourcing & Backroom Office Establishment and Management, Healthcare Account Management, and Multimedia Marketing. My recruitment experience covers nurses, therapists and other allied healthcare workers that are sourced all over US and overseas. As BDO, I brought a start-up company to its highest revenue mark, expanded its menu of services, designed & streamlined HR procedures and built effective cost-cutting measures. SPECIALTIES include, but is not limited to: Healthcare Marketing, Human Resources Management, Medical Staffing, Staffing Coordinator, Healthcare Recruitment, Account Management, Business Development, Healthcare Sales and Pricing Strategy, HR Training & Development, Career Coaching

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